The total population of Iceland is smaller than that of your average city around the world. In 2016, there were only 340,000 people who called Iceland home, and the largest city, Reykjavik, hosts around a third of them. The other cities are much smaller in comparison and are located in the south western part of the country. Additionally, there are a number of small fishing villages located along the outer ring. The large majority of the population is now living in urban areas, and Iceland is one of the most urbanized nations around the world, but fishing remains a stable of the economy and culture.
The economy was hit hard during the financial crisis of 2008, especially because of the banking collapse, but it has since experienced steady growth. When the banks failed, the strength of Iceland’s krona fell, and with the resulting economic depression, many Icelanders lost everything. However, the island rebounded quickly - largely a result of the weak krona and the increasing inflow of tourists. The number of inbound tourists increased from 562,000 visitors in 2010 to 1,1 million visitors in 2014, and these numbers are expected to increase. As a result, per capita GDP has also risen steadily, unemployment has dropped considerably and not to mention, after borrowing a great deal of money after the economic crisis, the national debt has also decreased significantly again. All in all, the economic outlook for Iceland looks bright.